On Sunday, Boeing’s defense department workers rejected the company’s latest contract proposal, extending the strike into its 13th week. Following the vote, the leadership of District Lodge 837 of the International Association of Machinists and Aerospace Workers in St. Louis, Missouri, stated that Boeing failed to meet the demands of their approximately 3200 members.
The International President of IAM, Brian Bryant, emphasized that Boeing executives continue to insult those who manufacture the most advanced military aircraft in the world, which are crucial for ensuring the security of our military personnel and the nation.
In response, Boeing expressed disappointment with the voting results and announced their intention to focus on executing the next phase of their contingency plan. The five-year proposal, which was quite similar to a previous one rejected by union members, included reductions in signing bonuses but added $3000 in Boeing stocks redeemable within three years, along with a four-year, $1000 retention bonus. The proposal also raised the wage growth rates for workers at the top pay level in the fourth year of the contract.
IAM leaders have been pressuring Boeing to increase the contribution ratio for the 401(k) retirement plan and raise the one-time signing bonus to a level close to $12,000, which was the amount given to the union members who went on strike at the company’s commercial aircraft division in the Pacific Northwest region last year.
Dan Gillian, Vice President and General Manager of the Air Dominance project at Boeing, called the proposal a milestone agreement that is “market-leading.” He reiterated that Boeing would not increase the overall value of the contract terms but only reallocate value within the terms.
In September, IAM members approved a four-year contract proposal from the union, which Boeing management refused to consider. According to IAM estimates, the union’s proposal would incur an additional cost of approximately $50 million over the four-year contract period compared to the rejected company proposal.
Union members have been relying on the weekly $300 IAM strike assistance, part-time jobs, and tightening their belts to make ends meet. Boeing stated that the medical insurance provided to striking employees had ended on August 30.
The strike began on August 4 and has impacted three Boeing factories located in St. Louis, St. Charles in Missouri, and Mascoutah in Illinois. Boeing officials have repeatedly stated that their contingency plans have limited the impact of the strike on production.
However, in comments submitted during a hearing on October 9 to the U.S. Senate Armed Services Committee, General Kenneth Wilsbach, nominee for Air Force Chief of Staff, noted that the strike had caused Boeing to delay the delivery of F-15EX fighter jets to the U.S. Air Force.